Detailed explanation of evaluation objectives
Trading period:
The trading period starts any time you open your first position and it will end after completing the objectives or when the trader violates any trading rule, objectives, or general terms and conditions.
Maximum loss:
This rule can also be called “account stop-loss”.
- 2-Step Maximum Loss is -10% of the initial account balance.
- 1-Step Maximum loss is -5% (of initial account balance) relative to the highest recorded balance.
Maximum daily loss:
This rule can also be called “trader’s daily stop-loss”. The rule says that at anymoment of the day (EE(S)T – Eastern European Summer Time), the daily equity decrease must not hit the predetermined limit.
- 2-Step Maximum daily loss is -5% (of the initial account balance) relative to the start of the day’s balance.
- 1-Step Maximum daily loss is -4% (of the initial account balance) relative to the start of the day’s balance.
Profit target:
The minimum profit target to complete the phase is set between 5% to 10% of the initial balance. All positions must be closed.
- 2-Step Profit target is 10% for Phase 1 and 5% for Phase 2 (with all positions closed).
- 1-Step The profit target is 10% of the initial account balance (with all positions closed).
1. FundingTraders Trading Evaluation: Trading Policies and Rules
FundingTraders Trading Evaluation (hereinafter referred to as “FundingTraders Evaluation”,“FundingTraders Trading Evaluation,” “MCF Group FZCO,” “Evaluation,” and/or “we” and/or “our” and/or“us”) is operated under the name MCF Group FZCO and RSRD Limited. RSRD Limited is a company registered at Suite C, Level 7, World Trust Tower, 50 Stanley street, CENTRAL, HONG KONG. MCF Group FZCO is a company registered at IFZABusiness Park, DDP - 001, A1 - 3641379065, Dubai. REG NO.:DSCO-FZCO-24876. MCF Group FZCO and RSRD Limited is a company that evaluates and recommends traders to Evaluator, the third-party Proprietary Trading company (hereinafter referred to as “Evaluator” or “Proprietary Trading Company”. All access and/or use of our services is subject to our General Terms and Conditions and these Trading Policies and Rules(hereinafter referred to as “Terms of Use” and/or this “Agreement”) in accordance with the terms. For your benefit and protection, it is mandatory for you to take enough time to read and understand this entire Agreement, as well as any other additional information available to you onwww.fundingtraders.com and the Client Section (hereinafter referred to as “Website”) prior to subscribing to any services with us and before you enroll in the Evaluation or pay any fees.
You must read, agree with, and accept all the terms and conditions contained in this Agreement without modifications. Should you not understand any part of this Agreement or any information available on the Website, you should contact us before subscribing to the service and taking part in the Evaluation, or you should seek independent legal advice.
1.1 Parties
This Agreement is made between yourself, as our user (hereinafter referred to as “you” or “your'' or, “trader” or in general terms, the “user”) and FundingTraders Trading Evaluation. ThisAgreement describes in full detail the Terms of Use you must accept, without restrictions or objections, before registering with us. By registering with us, you are acknowledging that you have read and fully understand these Terms of Use.
1.2 Trading
It is important to understand that under this program we are looking for users who can generate stable and consistent performance. As such, you hereby agree, not to trade with ‘unreasonable’ risk or gambling-like strategies. All trading activity will be monitored in real-time to be sure you adhere to the restrictions and guidelines below. Failure to do so may end our relationship immediately and forfeiture of any fees paid or profits due.
- 1.2.1 Users may not use any EAs, scripts, or robots unless the FundingTraders Trading Evaluation Risk Team has granted such an exception. Nor may users engage in following other users’ entry and exit signals manually or through copy trading. FundingTraders shall have the right to deem that users coordinate or copy their trades if several users with the same instruments in the same direction are made within one minute of each other or if all traded instruments, entries, and exits are identical or similar. Failing to comply with this rule will result in the termination of all FundingTraders accounts owned by the user. All trades must be based on the user’s own analysis and decisions.
- 1.2.2 Providing Signals to third parties: The user is not allowed to provide trading signals fromFundingTraders Trading Evaluation account nor from the FundingTraders Trading ProgramAccount in any format (digitally or manually) to third parties or any other FundingTraders Accountswithout FundingTraders approval.
- 1.2.3 News event trading: News event trading is allowed in FundingTraders Trading Evaluation. However, relying heavily on news trading is not allowed on both evaluation and funded accounts as this is not sustainable. Please remember that high-impact news can affect instruments that are not directly correlated to the country releasing its economic data.
- 1.2.4 Responsible and consistent strategy: The user’s strategy must be responsible and consistent during the whole trading period. The user’s trading must demonstrate that their strategy works in the long term and is not based on pure luck. If the user places an unusually large number of orders for the Services within an unreasonably short period of time or places unusually large or small orders compared to previous trades, it will be considered as harmful or gambling behavior of the Customer. To specify the limit of what is considered a large order, a user is not allowed to risk more than 2.00% of the initial account balance on one trade idea including split positions. Split positions that are considered as one trade idea are as follows: (1) If the trades on the same symbol is floating or open at the same time at one point in the same direction and (2) the trades on the same symbol and direction were closed and opened within 2 minutes of each other. In such cases, the Provider reserves the right to suspend any further orders of the Services by the Customer and has the right to terminate the user’s account. If we identify that the unusual behavior as per this paragraph relates to the Customer's involvement in Forbidden Trading Practices, we may take respective actions as perceived in Section 5 of General Terms and Conditions(https://fundingtraders.com/terms). The Provider reserves the right to determine, at its own discretion, the nature of the behavior described above and reasonable boundaries for such determination.
- 1.2.5 Trading Instruments: FundingTraders Trading Evaluation includes all instruments available on the MetaTrader application.
- 1.2.6 All positions must be closed before the trading period ends and before the trading period can be reviewed.
- 1.2.7 Exceptions: Based on your individual trading methods, it is possible to be granted an exception, however, exceptions are granted only after an interview with our Risk Management team. Without such granted exception(s), users who take unreasonable risks may face termination of our relationship.
2. Trading Account Management & Right of Refusal.
The Company has the right to conclude the contract of the FundingTraders Trading Evaluation account with the Customer – during any part of the Trading Evaluation. Should any concerns about user activity and excessive risks on any account arise, the company will attempt to contact the user immediately to conduct an interview and discuss employed trading practices. The company will attempt to find a remedy for the situation. However, should there be no remedy for concerns, the company reserves the right to terminate this Agreement immediately. Such concerns may include:
2.1
The Company’s potential for suffering financial losses;
2.2
Investors of the company’s potential for suffering financial losses;
2.3
The potential damage to the Company’s reputation due to unreasonable usage of the platform;
2.4
Protection of Capital. The evaluator is under a contractual obligation to protect company funds at all times. Should the company suspect that the user’s practices employed on a Demo account would not be replicable in live market conditions, the company reserves the right to terminate a contractual relationship with the user.
2.5
Termination of Agreement Due to Concerns, Trading Violations, And Ethics. Any of the following violations will result in immediate termination of our contractual relationship unless you are able to justify the occurrence: Any form of arbitrage performed in your trading account - e.g., usage of specialized software programs that are designed to exploit possible price latencies on a Trading Platform or that allow for the use of technological and/or algorithmic trading patterns that are aimed at exploiting price latency/priced freezes for arbitrage opportunities on a Trading Platform, thus resulting in unrealistic and/or fake profits on a trading account, which would not be possible within the real trading environment. Any form of HFT or HFT-like trading systems are not applicable to live market conditions due to latency, commission, spread, and slippage limitations. Any form of martingale and grid trading strategies is not tolerated due to its nature of high leverage and high risk over a large series of trades. Abuse of technological issues of a broker, intentional or otherwise, where opening and closing prices might be readjusted and users will be able to continue trading, which would decrease the profitability or increase the loss, this data will not be taken into account for ‘passing qualification’. Usage of guaranteed ‘Take Profit’ and ‘Stop Loss’ to trade news/price and weekend gaps, due to its possibility in a demo account.
2.6
Difference between Demo and Real Accounts. The user confirms a good understanding of major differences between Live and Demo trading, which include but are not limited to the following: In most cases – Demo accounts have better prices and abnormal execution behavior relative to the markets. Therefore, a user has to consider that an employed trading system should be able to perform profitably in a real market scenario, even with a slightly less favorable spread. Demo accounts have no or very little (artificial) slippage, due to no real liquidity. Unlike Demo accounts, Real accounts with trades over 1 Standard Lot might not be filled immediately or fully on a Real Account. On a real account ‘Stop Loss’ and ‘Take Profit’ are filled only at the level of the closest available liquidity, not at the level of a set price. Orders on Demo accounts are executed at the quoted price, whereas the quoted price of a Real account displays the last available quote of an instrument, not necessarily the available quote.
3. Forbidden trading practices.
3.1 DURING THE DEMO TRADING, IT IS PROHIBITED TO:
- a) KNOWINGLY OR UNKNOWINGLY USE TRADING STRATEGIES THAT EXPLOIT ERRORS INTHE SERVICES SUCH AS ERRORS IN DISPLAY OF PRICES OR DELAY IN THEIR UPDATE;
- b) PERFORM TRADES USING AN EXTERNAL OR SLOW DATA FEED;
- c) PERFORM, ALONE OR IN CONCERT WITH ANY OTHER PERSONS, INCLUDING BETWEENCONNECTED ACCOUNTS, OR ACCOUNTS HELD WITH DIFFERENT FUNDINGTRADERSENTITIES, TRADES OR COMBINATIONS OF TRADES THE PURPOSE OF WHICH IS TOMANIPULATE TRADING, FOR EXAMPLE BY SIMULTANEOUSLY ENTERING INTO OPPOSITEPOSITIONS;
- d) PERFORM TRADES IN CONTRADICTION WITH THE TERMS AND CONDITIONS OF THEPROVIDER AND THE TRADING PLATFORM;
- e) USE ANY SOFTWARE, ARTIFICIAL INTELLIGENCE, ULTRA-HIGH SPEED, OR MASS DATAENTRY WHICH MIGHT MANIPULATE, ABUSE, OR GIVE YOU AN UNFAIR ADVANTAGE WHENUSING OUR SYSTEMS OR SERVICES; OR
- f) OTHERWISE PERFORM TRADES IN CONTRADICTION WITH HOW TRADING IS ACTUALLYPERFORMED IN ANY FINANCIAL MARKET, OR IN A WAY THAT ESTABLISHES JUSTIFIEDCONCERNS THAT THE PROVIDER MIGHT SUFFER FINANCIAL OR OTHER HARM AS A RESULTOF THE CUSTOMER’S ACTIVITIES.
3.2
Furthermore, Customer shall not exploit the Services by performing trades without applying market standard risk management rules for trading on financial markets, this includes, among others, the following practices (i) opening substantially larger position sizes compared to Customer’s other trades, whether on this or any other Customer’s account, or (ii) opening substantially smaller or larger numberof positions compared to Customer’s other trades, whether on this or any other Customer’s account. The Provider reserves the right to determine, at its own discretion, whether certain trades, practices, strategies, or situations are Forbidden Trading Practices.
3.3
If the Customer engages in any of the Forbidden Trading Practices described in clause 5.4, (i) the Provider may consider it as a failure to meet the conditions of the particular FundingTraders Trading Evaluation or Verification, (ii) the Provider may remove the transactions that violate the prohibition from the Customer’s trading history and/or not count their results in the profits and/or losses achieved by the demo trading, or (iii) to immediately cancel all Services provided to the Customer and subsequently terminate this Agreement.
3.4
In case, when some or all Forbidden Trading Practices are executed on one or more FundingTraders Trading Evaluation and Verification accounts of one Customer, or accounts of various Customers, or by combining trading through FundingTraders Trading Evaluation and Verification accounts and FundingTraders Trader accounts, then the Provider is entitled to cancel all Services and terminate all respective contracts related to any and all Customer’s FundingTraders Trading Evaluation and Verification accounts. The Provider may exercise any and all actions in Clauses 5.5 and 5.6 at its own discretion.
3.5
If any FundingTraders user accounts were used for or were involved in the Forbidden Trading Practices, this may and will constitute a breach of respective terms and conditions for the FundingTraders user account with a third-party provider and may result in the cancellation of all such user accounts and termination of respective agreements by the third-party provider.
3.6
If the Customer engages in any of the practices described in clause 5.4 repeatedly, and the Provider has previously notified the Customer thereof, the Provider may prevent the Customer from accessing all Services or their parts, including access to the Client Section and Trading Platform, without any compensation. In such a case, the Customer is not entitled to a refund of the fees paid.
3.7
The Provider does not bear any responsibility for trading or other investment activities performed by the Customer outside the relationship with the Provider, for example by using data or other information from the Client Section, Trading Platform, or otherwise related to the Services in real trading on financial markets, not even if the Customer uses for such trading the same Trading Platform that the Customer uses for demo trading.
3.8
DEVELOPMENTS IN FINANCIAL MARKETS ARE SUBJECT TO FREQUENT AND ABRUPTCHANGES. TRADING ON FINANCIAL MARKETS MAY NOT BE PROFITABLE AND CAN LEAD TOSIGNIFICANT FINANCIAL LOSSES. ANY PREVIOUS PERFORMANCES AND PROFITS OF THECUSTOMER’S DEMO TRADING ARE NOT A GUARANTEE OR INDICATION OF ANY FURTHERPERFORMANCE.
4. Indemnity and Liability.
4.1
The company shall not be liable to the user or to any third party except by reason of acts that constitute gross negligence, bad faith, or intent to defraud on behalf of the company.
4.2
User will indemnify, hold harmless, and defend the Company and its members against any liability, loss cost, damage, or expense and any amount paid in settlement thereof to which any of them maybe come subject to in acting pursuant to or in furtherance of this Agreement or in connection with any transaction for the Account.
4.3
The company will not hold the user financially liable for any losses incurred on the evaluation accounts, which were the result of technical issues, or caused due to ‘unusual’ market movements, which could not be avoided with risk mitigation.
4.4
Only one user profile per verified individual is permitted. One user profile/verified individual can have multiple accounts. Users are not permitted to allow others to use their account and may not use any other FundingTraders account. IP addresses, device IDs, and behavioral data maps will be used by the automated risk system as a basis for determining unauthorized trading activity. All users must be contactable on the telephone number and email provided during verification at any time a position is held in the markets. FundingTraders reserves the right to demand extra video verification at any time. Failure to contact the user or to verify identity will result in account suspension.
5. Refund Policy:
The user has the right to cancel the ordered services within 14 days of purchasing the services (FundingTraders Trading Evaluation). The user is aware and agrees that this does not apply after starting to use the services, meaning, opening the first trade on the Evaluation account.
6. Term of The Agreement.
Either party may terminate this Agreement at any time upon at least 5business days prior written notice to the other via email or telephone.
7. FundingTraders Evaluation Program and User Commissions (Phase 3).
If the Customer is successful in both the Evaluation and Verification, the user will be recommended to the FundingTraders Trader Program, the proprietary trading platform operated by Evaluator and may be offered a contract by this third-party company. To get accepted to the FundingTraders Trader Program the user must open an account with Evaluator, provide required KYC documentation, and sign an agreement with a company. If the user is accepted to the program, the user can start trading at the same initial account size as the user was trading in the Trading Evaluation. The user can also start earning performance commissions according to the agreement signed with the Proprietary Trading Company. All users are compensated on a profit-split basis only. User performance commission depends on the chosen program, risk level, and phase. The user may request a withdrawal of their commission when their account balance on Evaluator is at least $50 and when the payout schedule is due. Payments will be made by wire transfer or any other payment method available with Evaluator. Alternative payment methods may be available, however, the user must ensure that bank transfers are receivable by the institution. The evaluator will not be responsible for failure to deliver a payout due to mistakes on the user’s end. Nor will payment be re-sent in the event of rejection of transfer by the receiving foreign institution. The receiver may be charged by the payment system.
8. Risk Disclosure.
All content published and distributed by MCF Group FZCO and RSRD Limited and its affiliates (collectively, the “Company”)is intended solely for the study purposes related to trading on financial markets and does not serve in anyway as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose! MCF Group FZCO and RSRD Limited does not provide any of the investment services listed in the Capital Market Undertakings Act No. 256/2004 Coll. The information in this document is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local laws or regulations. MCF Group FZCO and RSRD Limited is not a broker and does not accept deposits. MCF Group FZCO and RSRD Limited or its brokers may:
- -Change margin requirements at any time in line with perceived or actual excessive changes in volatility and/or liquidity
- -Cancel orders or trades at any time in line with the perceived or actual risk of nonexecution of stop or limit orders due to market conditions
- -FundingTraders or its brokers are not responsible for the variable spread, liquidity levels, or limit order execution parameters provided by liquidity providers and market makers.
CFTC Rules 4.41
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the tradeshave not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
9. Approval.
User has read, understood, and agreed to FundingTraders Evaluation terms and rules on this document, Detailed Explanation of Evaluation rules and objectives published on www.fundingtraders.com.
No provision of this Agreement may be waived or amended unless the waiver or amendment is inwriting and signed by the user and an authorized officer of the Company. This Agreement shall be subject to the law of UAE.
This agreement can be also approved and signed by all parties digitally in the FundingTradersClient Section. The user has approved this agreement digitally on app.fundingtraders.com.
Timestamp: Refer to document details.
COMPANY
MCF Group FZCO
ADDRESS
IFZA Business Park, DDP - 001, A1 - 3641379065, Dubai
ID NO
DSCO-FZCO-24876
COMPANY
RSRD Limited
ADDRESS
SUITE C, LEVEL 7, WORLD TRUST TOWER, 50 STANLEY STREET, CENTRAL, HONG KONG
A copy of this agreement is available for both parties on app.fundingtraders.com / Client Section